Risk-Constrained Evaluation of Financial Document Recognition: A Formal Framework for Evidence, Critical Errors, and Selective Automation

Financial document recognition is commonly evaluated using character and word error rates, which do not adequately represent the consequences of errors in financial workflows. This paper formalizes financial document recognition as a risk-constrained evidence-recovery problem. It defines typed, evidence-linked financial facts and a multi-layer quality model spanning text, layout, tables, fields, semantic relations, calibration, robustness, and operational performance. It introduces non-compensatory acceptance gates based on upper confidence bounds for critical-field errors, and formulates selective automation as a constrained risk-coverage problem with review-capacity limits. The paper also specifies annotation requirements, leakage-resistant benchmark splits, statistical estimands, and a reproducibility card. Formal propositions establish why aggregate scores cannot certify critical-field reliability and why zero observed errors do not imply zero risk. A synthetic example illustrates the decision rule. The work is theoretical; no empirical benchmark or model performance claim is presented.

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Publication Details

Journal
arXiv (Cornell University)
Published
2026-11-02
DOI
https://doi.org/10.48550/arxiv.2611.02775
Primary Topic
Handwritten Text Recognition Techniques
Type
preprint
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preprint

Risk-Constrained Evaluation of Financial Document Recognition: A Formal Framework for Evidence, Critical Errors, and Selective Automation

Subodh Lonkar
arXiv (Cornell University)
Handwritten Text Recognition Techniques
preprint

Risk-Constrained Evaluation of Financial Document Recognition: A Formal Framework for Evidence, Critical Errors, and Selective Automation

Subodh Lonkar
preprint en

Abstract

Financial document recognition is commonly evaluated using character and word error rates, which do not adequately represent the consequences of errors in financial workflows. This paper formalizes financial document recognition as a risk-constrained evidence-recovery problem. It defines typed, evidence-linked financial facts and a multi-layer quality model spanning text, layout, tables, fields, semantic relations, calibration, robustness, and operational performance. It introduces non-compensatory acceptance gates based on upper confidence bounds for critical-field errors, and formulates selective automation as a constrained risk-coverage problem with review-capacity limits. The paper also specifies annotation requirements, leakage-resistant benchmark splits, statistical estimands, and a reproducibility card. Formal propositions establish why aggregate scores cannot certify critical-field reliability and why zero observed errors do not imply zero risk. A synthetic example illustrates the decision rule. The work is theoretical; no empirical benchmark or model performance claim is presented.

arXiv (Cornell University)
Handwritten Text Recognition Techniques
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Risk-Constrained Evaluation of Financial Document Recognition: A Formal Framework for Evidence, Critical Errors, and Selective Automation — Subodh Lonkar · arXiv (Cornell University) (2026) | TGRS Research Map | TGRS